In January 2007, the House of Representatives in Nepal, restored after the people's movement of April, 2006, unanimously adopted an interim Constitution and dissolved itself. This technically paved the way for Maoist insurgents to enter a new and reconstituted interim parliament. Clearly a political landmark of tremendous import, Nepal's political transition has been accompanied by the initiation of a nascent disarmament process.

Despite the cease-fire, the Nepalese Maoists are busy collecting illegal taxes, besides carrying out abductions, extortion and forceful recruitment. They are consolidating their bases in urban areas where they had a very poor presence till April 2006, and are recruiting new cadres with the objective of setting up a communist society, if the peace talks fail. In the last four months, the strength of the Maoist armed cadres has increased from 29,000 to 35,000. While the Nepal Army is confined to its barracks, the Maoists are reportedly carrying their arms and moving freely.

Despite the King's proclamation and the subsequent end to the 19-day anti-Monarchy protests by the seven party alliance (SPA) on April 25, 2006, Nepal is still not sure of peace and stability. The difference between the SPA and the Maoists on the new constitution seems to be the biggest challenge before the Koirala Government. Although the Maoists have declared a three-month ceasefire, they have refused to surrender their weapons before or during the elections to a Constituent Assembly.

Nepal is witnessing relative political calm after the Maoists declared a three month ceasefire to facilitate a political solution to the insurgency, which has been marked by unabated violence, threatening peace and stability in the Himalayan Kingdom. The Maoist insurgency, which originated ten years ago in April 1996, has reached a new phase. After several rounds of unsuccessful negotiations to resolve the political crisis posed by the Maoists in the past, the current situation is characterized by anxiety and hope. The anxiety is over whether a peaceful solution can be reached.

Nepal has been in turmoil ever since the king sacked the duly elected Prime Minister Sher Bahadur Deuba and took over the direct control of government on February 1, 2005. Since then Nepal has been engulfed by relentless violence as conflict between Royal Nepalese Army, which has always been the king’s army as opposed to a national army, and the Maoist rebels has intensified and resulted in a large number of deaths and destruction. Frequent violations of human rights by the two sides have been reported.